Brookfield has announced:
it intends to redeem its 8.30% Preferred Securities due June 30, 2051 (the “Securities”) (CUSIP No. 112585 849) on July 3, 2007. The Redemption Price will be C$25.00 per Security plus accrued and unpaid interest of C$0.017055 thereon up to but excluding the redemption date, representing a total Redemption Price of C$25.017055 per Security.There are currently 5,000,000 outstanding 8.30% Preferred Securities, which are listed on the TSX under the symbol BAM.PR.T.
Hardly a surprise, but a sad event never-the-less. As the May 15 evaluation of the “Interest Bearing” index shows, this was the last of the Operating-Company Interest-Bearers that made life so well worth living a few years ago. The only Preferred Securities left are split-share corporations.
[…] I will admit to being puzzled by the poor performance of the Interest-Bearing Index, also shown prior to its rebalancing. Note that BAM.PR.T is about to be called, but look at the pre-tax bid-YTWs available for BSD.PR.A and FIG.PR.A! As of June 22 the former had an asset coverage ratio of 1.97:1 (the June month-end distribution will have reduced this a bit, but not much) and a DBRS rating of Pfd-2. As of June 28, the latter had asset coverage of 2.58:1 (and has already accounted for the second quarter distribution), while also being rated Pfd-2. It (FIG.PR.A) remains under review with developing indications (”pending the resolution of their respective reorganization and amalgamation plans, which are expected to occur shortly”) but that reorganization settled months ago … DBRS seems to be dragging its feet a little! […]
[…] Each of the headlined issues has been redeemed as advertised: BAM.PR.T and CCS.PR.A were specifically noted on this blog, while CAC.PR.A was a scheduled maturity. […]